OAK BROOK, Ill., Jan. 12, 2015 /PRNewswire/ -- Retail Properties of America, Inc. (NYSE: RPAI or the "Company") announced today that it closed on the acquisition of the retail portion of Downtown Crown, a Class A mixed-use project located in the Washington, D.C. Metropolitan Statistical Area ("MSA"). The retail portion (the "property") was acquired by the Company from The JBG Companies and JBGR Retail on an unencumbered basis for a gross purchase price of $162.8 million. The property contains approximately 258,000 square feet of retail space, including a neighborhood center component anchored by Harris Teeter and a lifestyle center component anchored by a variety of national and regional restaurant concepts such as Coastal Flats, Ted's Montana Grill, Old Town Pour House and Ruth's Chris Steakhouse. The property opened in phases beginning in the fourth quarter of 2013 and is currently 62.7% occupied and 77.5% leased.
Downtown Crown represents the commercial core of the 180-acre Crown community, which is expected to include more than 2,200 residential units upon completion. The property is located within a "super-zip", one of the most affluent and well-educated zip codes in the country, and boasts average household income of $129,000 and population of 137,000 within a three-mile radius. In total, the Company now owns over 2.6 million square feet in the Washington, D.C./Baltimore MSAs, with strong portfolio trade area demographics, including weighted average household income of $101,000 and population of 99,000 within a three-mile radius.
"We are pleased to start 2015 with the acquisition of Downtown Crown, demonstrating our ongoing ability to source compelling, high quality, strategically located retail assets in a very competitive investment environment," stated Shane Garrison, executive vice president, chief investment officer and chief operating officer. "This acquisition augments our significant footprint in the Washington, D.C. market and will allow us to utilize our robust regional operating platform to complete and optimize the merchandise mix at the property. With high barriers to entry, significant household density and income, and a strong mix of retail, service and restaurant tenants, Downtown Crown will further establish RPAI as a key player in one of our target markets, highlighting our ability to execute on our long-term strategic plan and drive value for our shareholders."
Retail Properties of America, Inc. is a REIT and is one of the largest owners and operators of high quality, strategically located shopping centers in the United States. As of September 30, 2014, the Company owned 218 retail operating properties representing 31.1 million square feet. The Company is publicly traded on the New York Stock Exchange under the ticker symbol RPAI. Additional information about the Company is available at www.rpai.com.
About the JBG companies
Headquartered in Chevy Chase, Maryland, The JBG Companies is a private real estate investment firm that develops, owns and manages office, residential, hotel and retail properties. The company has more than $10 billion in assets under management and development in the Washington, D.C. area. Since 1960, JBG has been active in the areas where it invests, striving to positively impact local communities. More information can be found by visiting the company's website: www.JBG.com, or by calling 240.333.3600.
Michael Fitzmaurice, VP - Finance
Retail Properties of America, Inc.
SOURCE Retail Properties of America, Inc.